Gold and Silver Edge Higher After Spain Bailout

On Monday, gold (NYSEARCA:GLD) futures for August delivery increased $5.40 to settle at $1,596.80 per ounce, while silver (NYSEARCA:SLV) futures edged 15 cents higher to close at $28.62.

It was a quiet day for both precious metals, despite the developments in Europe over the weekend. Spain become the latest euro member to request a bailout, which may total as much as 100 billion euros ($125 billion) for the country’s banking system.

“The 100 billion euros is the number that we were looking for so I’m cautiously optimistic,” Olly Burrows, credit analyst at Rabobank International, told Bloomberg. “We still have to find a solution to the sovereign debt crisis: it’s not done yet and we still have to press on with the task of uniting Europe.” Any relief investors were expecting from the bailout package was short lived. Equities turned lower in Monday morning trading and interest rates in Spain and Italy continued upward.